What do you think Tesla should do about the increased inventory of the Model Y? Tesla needs to do something though as buyers are waiting to buy a Model 3 or Model Y until it becomes more clear what the IRA tax credit implications are. It's unknown what the battery sourcing requirements are and the Tesla Model 3 RWD (standard range) has an LFP battery which is made from CATL in China. Model 3 inventory is also going up and all of this is confusion about the IRA tax credit. Lastly, you could add air suspension to the Model Y to increase ground clearance to get it to the $80,000 MSRP tax credit limit without the 7 seats. You could also sell a software limited Model Y standard range for $54,999 with an option to unlock additional range after delivery. You could make the Model Y performance configurable with 7 seats. This alleviates the problem and would get buyers going into the Model Y knowing that it qualifies for the tax credit and they aren't paying anymore. Tesla can make the 7-seater Model Y option free or have it be the default option. Right now, this is available in existing inventory on the Tesla website, but the price is closer to $63,000. Tesla can release the Model Y standard range for $54,999. There are a few options for Tesla to handle this and they are all very doable:
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